ASIATODAY.ID, JAKARTA – PT Mineral Industri Indonesia (Persero) or MIND ID announced that it has completed the purchase transaction of around 14% of the divested shares of PT Vale Indonesia Tbk (INCO) from Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), on June 28, 2024.
Thus, MIND ID has completed the acquisition of new shares as an exercise of all Pre-emptive Rights (HMETD) obtained in the Capital Increase by Providing PT Vale’s HMETD I and the purchase by MIND ID of some of the old shares belonging to VCL, SMM, and Vale Japan Limited through the negotiation market on the Indonesian Stock Exchange (IDX).
MIND ID Corporate Secretary Heri Yusuf said, MIND ID will continue to collaborate with VCL and other stakeholders in developing INCO.
“We will optimize the downstream process for PT Vale’s mining products so that it can support domestic industry as well as export needs to support the downstream program,” said Heri in a press release, Monday, July 1 2024.
The acquisition of INCO shares is a strategic step for MIND ID so that Indonesia can take a stronger position to secure the supply of nickel-based downstream industry raw materials. Moreover, nickel is a strategic mineral resource as the main raw material for batteries for electric vehicles and electricity storage infrastructure.
“This corporate action is momentum in strengthening Indonesia’s position in the battery and electric vehicle industry in the future,” said Heri.
With the completion of this transaction, MIND ID officially becomes the largest shareholder in PT Vale with its share portion increasing from 20.0% to around 34.0%. Meanwhile, VCL ownership was reduced from 44.4% to around 33.9% and SMM ownership was reduced from 15.0% to around 11.5%. This share divestment is part of the obligation to extend the operating permit for 10 years obtained by INCO through the issuance of a Special Mining Business Permit (IUPK) until 28 December 2035. INCO received the issuance of the IUPK on 3 May 2024 as legal certainty for the company to continue operating in its concession area. (AT Network)
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